Jason Bartlett is the managing partner of a business that has just finished building a 60-room motel, Bartlett anticipates that he will on these rooms for 15,000 nights next year (or 15,000 room-nights). All rooms are similar and will rent for the same price. Bartlett estimates the following operating costs for next year (Click the icon to view the operating costs. (Click the icon to view additional information) Read the requirements Data Table More Info $5 per room-night The capital invested in the motel is $900,000. The partnership's target return on investment is 25%. Bartlett expects demand for rooms to be uniform throughout the year. He plans to prloo the rooms at full cost plus a markup on full cost to eam the target return on investment $ Variable operating costs Fond costs Salaries and wages Maintenance of building and pool Other operating and administration costs Total fixed costs 175,000 52.000 148,000 Print Done -0% $ 375.000 pe WETTER DET low your calculations bion. Select the formula first, then enter the amounts to calculate the contribution margin to the nearest dollar) Print Done New contribution min Choose from any list of enter any number in the input fields and then continue to the next question MacBook CU DO So 20 bu da FT TY $ & 5 6 7 8 9 0 Jason Bartlett is the managing partner of a business that has just finished building a 60-room motel. Bartlett anticipates that he will rent these rooms for year (or 15,000 room-nights). All rooms are similar and will rent for the same price. Bartlett estimates the following operating costs for next year (Click the icon to view the operating costs.) (Click the icon to view additional information) Read the requirements Requirement 1. What price should Bartlett charge Requirements X Begin by selecting the formula, then enter the am 1. What price should Bartlett charge for a room-night? What is the markup as a percentage of the full cost of a room-night? 2. Bartlett's market research indicates that if the price of a room-night What is the markup as a percentage of the full cos determined in requirement 1 is reduced by 15%, the expected number of room-nights Bartlett could rent would increase by 20%. Should Bartlett reduce prices by 15%? Show your calculations. Print Requirement 2. Bartlett's market research indicat Done ted numbe Bartlett could rent would increase by 20%. Should Begin by calculating the new contribution margin which will help you make your decision. Select the formula first, then enter the amounts to calculate the co (Round the new price per room to two decimal places. Round the contribution margin to the nearest dollar.) = New contribution margin ) Choose from any list or enter any number in the input fields and then continue to the next question, MacBook
